Fujifilm to take majority control of Xerox

New entity will be called Fuji Xerox and keep Xerox’s listing on the New York Stock Exchange

Bloomberg News

Xerox Corp.'s Stamford Connecticut headquarters.

By

MayumiNegishi

TOKYO—The American icon Xerox is getting a new Japanese owner.

Fujifilm Holdings Corp.
4901, +1.55%
said Wednesday that it would take a majority stake in Xerox Corp.
XRX, +0.16%
, marking the end of independence for a stalwart of 20th-century American industry.

The new entity, to be called Fuji Xerox, will be 50.1% owned by Fujifilm and will keep Xerox’s listing on the New York Stock Exchange, the companies said. Xerox’s chief executive, Jeff Jacobson, is set to be CEO of the new company. Also, a $2.5 billion cash dividend would be paid to current Xerox shareholders under the deal.

The companies are fighting sluggish photocopier demand in a digital world, and investors’ initial reaction to the deal was unfavorable. Fujifilm shares tumbled 8.3% in Tokyo trading Wednesday before the announcement. The Wall Street Journal reported Wednesday morning Tokyo time that a deal was imminent.

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